Abstract

This study is an observational case study with 35 regencies / cities in Central Java Province, with a period of 8 years (2002 to 2009). Object of the study consisted of four variables, namely: expenditures of regencial goverment, Gini ratio, the proportion of non-food consumption expenditure, and dependency ratio. Hypothesis, the expected four variables collectively influence the development of the Human Development Index (HDI) figures in the Central Java Province. Secondary data obtained from the publication of survey results related to the Statistics Indonesia (BPS) with time series from 2002 to 2009, thus forming the balance pooled data, because data variables across time and across the full range available with a total of 280 cross section data. Data analysis using log linear regression with the help of the application program E-views 5.1 statistical test using random effects regression method was selected. Conclusions from studies of the four variables thought to affect the HDI in Central Java province, assuming ceteris paribus condition that: Expenditures of regencial goverment significantly positive influence on the HDI. Elasticity of the HDI increased due to increased expenditures amounted to 0.032. If the regional spending rose 1 percent, then the average HDI will rise about 0.032 percent. Gini ratio is significantly negative effect on the HDI. Elasticity increased HDI in connection with a reduction in the Gini ratio is equal to -0.034, if the Gini ratio fell 1 percent, then the average HDI will rise about 0.034 percent. The proportion of non-food expenditures, significantly positive influence on the HDI. HDI increased elasticity with respect to increasing the proportion of non-food expenditures amounted to 0.172. If the proportion of non-food spending rose 1 percent, then the average HDI will rise about 0.172 percent. Dependency ratio is significantly negative effect on the HDI. Elasticity increased HDI in connection with a reduction in the dependency ratio is equal to -0.062. When the dependency ratio fell 1 percent, then the average HDI will rise about 0.062 percent. Keyword: HDI , Centarl Java Province, Random Effect .